The International Monetary Fund (IMF) stands ready to assist Pakistan in its efforts to emerge from a looming financial crisis and agree roadmaps to monetary sustainability with the new authorities, The News reported on Friday.
Speaking to The News, the IMF’s resident chief in Pakistan, Esther Perez Ruiz, said: “The IMF commends [Shehbaz] Sharif to become prime minister and looks forward to working with his authorities and discussing regulations that would foster an inclusive and sustainable boom.
She said this at the same time as she commented on the advisability of continuing talks with the Pakistani authorities for the conduct of the 7th review under the $6 billion Expanded Financing Facility (EFF). However, the IMF office did not provide any specific date or time for talks to kick-start the stalled IMF program.
According to leading reliable sources, Pakistan needs huge injections of dollars on an immediate basis which will prevent a stability of the charge disaster as the foreign currency reserves held by the State Bank of Pakistan ( SBP) also fell to $10.8 billion. 8 April 2022. China has yet to renew its $2.5 billion commercial mortgage.
Another reputable leader said China has indicated it has agreed in principle to roll over this industrial loan, but can now work out the technical details as a consortium of three banks get involved. “The Chinese side is waiting for the visit of newly elected Prime Minister Shehbaz Sharif or an official request from him. Pakistan needs these dollar inflows immediately because they are being depleted at an accelerating rate,” the official said.
On a direct basis, relaunching the IMF program is not an easy project, especially since there have been massive slippages in the internal and external bills of the economic system and the new authorities will no longer be in able to take tough decisions such as trekking gasoline and energy costs as well as additional fiscal measures for the resumption of the stalled IMF program.
Nor will the gaping finances and deficits of the modern accounts win a lenient frame of mind from the IMF. The financial deficit stood at 2.504 trillion rupees or 3.9% of GDP for the first 9 months of this financial year according to provisional estimates, even though the Ministry of Finance projected it to reach 5.5 trillion rupees by June 30, 2022. .
Pakistan is left and using no option but to seek additional multi-billion dollar deposits from nice countries including China and Saudi Arabia and corporate loans from a consortium of banks to shore up its declining foreign currency reserves.
According to SBP facts released on Thursday, Pakistan’s total overseas liquid reserves stood at $17.028 billion as of April 8, 2022. The destruction of foreign exchange reserves indicates that overseas reserves held with l help from the main bank were 10 80 dollars. four billion and online foreign exchange reserves held by commercial banks amounted to 6,178 billion dollars. During the week ended April 8, SBP reserves decreased by $470 million to $10.84 billion, mainly due to external debt payments.